State of Hawaii Taxable General Obligation Bonds of 2020, Series FZ - PowerPoint PPT Presentation

State of Hawaii Taxable General Obligation Bonds of 2020, Series FZ $900,000,000* Investor Presentation July 28, 2020 (as updated on July 31, 2020) ____________________ * Preliminary, subject to change.

Disclaimer The Investor Presentation you are about to view is provided as of July 28, 2020 (as updated on July 31, 2020) for a proposed offering of the State of Hawaii’s (“the State”) Taxable General Obligation Bonds of 2020, Series FZ. If you are viewing this presentation after that date, events may have occurred that have a material adverse effect on the financial information presented. Neither the Underwriters mentioned in this presentation (the “Underwriters”), nor the State have undertaken any obligation to update this presentation. The information presented is not warranted as to completeness or accuracy and is subject to change without notice. You agree not to duplicate, copy, download, screen capture, electronically store, or record this presentation, nor to produce, publish or distribute this presentation in any form whatsoever. This Investor Presentation is provided for your information and convenience only. Any investment decisions regarding the State’s Series 2020 Bonds should be made only after a careful review of the complete Preliminary Official Statement. This Investor Presentation does not constitute a recommendation or an offer or solicitation for the purchase or sale of any security or other financial instrument or to adopt any investment strategy. Any offer or solicitation with respect to the State’s Series 2020 Bonds will be made by means of a Preliminary Official Statement or Official Statement that will describe the actual terms of the State’s Series 2020 Bonds. In no event shall the State or the Underwriters be liable for any use by any party of, any decision made or action taken by any party in reliance on, any inaccuracies or errors in, or any omissions from, the information contained herein and such information may not be relied upon by you in evaluating the merits of participating in any transaction mentioned herein. These materials have not been prepared with a view toward public disclosure under applicable securities laws or otherwise, and may not be reproduced, disseminated, quoted or referred to, in whole or in part. These materials may not reflect information known to other professionals in other business areas of the Underwriters and their affiliates. The Underwriters makes no representations as to the legal, tax, or accounting treatment of any transactions mentioned herein, or any other effects such transactions may have on you and your affiliates or any other parties to such transactions and their respective affiliates. You should consult with your own advisors as to such matters. Nothing in these materials constitutes a commitment by the Underwriters or any of their affiliates to enter into any transaction. Past performance is not indicative of future returns, which will vary. Transactions involving the State’s Series 2020 Bonds may not be suitable for all investors. You should consult with your own advisors as to the suitability of such securities or other financial instruments for your particular circumstances. Additional information is available upon request. Clients should contact their salesperson at, and execute transactions through, the Underwriters or their affiliated entities qualified in their home jurisdiction unless governing law permits otherwise. Neither the State, Underwriters or their affiliates provide tax advice. Any statements contained herein as to tax matters were neither written nor intended to be used and cannot be used by any taxpayer for the purpose of avoiding tax penalties that may be imposed on such taxpayer. 1

Series 2020 G.O. Bonds Financing Summary * General Bond Information Issuer: State of Hawaii Par Amount: $900,000,000* Tax Status/Offering: Taxable General Obligation Bonds of 2020, Series FZ Ratings: Moody‘s: Aa2 (Stable) S&P: AA+ (Negative) Fitch: AA+ (Negative) Security: The full faith and credit of the State of Hawaii Financing, or reimbursing the State of Hawaii for, the costs of acquisition, construction, extension or improvement of various public improvement projects, among which are public buildings and facilities, Purpose: elementary and secondary schools, community college and university facilities, public libraries and parks and for other public purposes. Principal Amortization: August 1, 2025* to August 1, 2040* Coupon Type: Fixed Rate Call Option: TBD* Lead Manager: BofA Securities Co ‐ Senior Manager: Morgan Stanley Co ‐ Managers: Citigroup and Goldman Sachs & Co. Schedule Virtual Investor Presentation: August 3, 2020* Indications of Interest: August 4, 2020* Pricing Date: August 5, 2020* Delivery Date: August 12, 2020* ____________________ 2 * Preliminary, subject to change.

Health and Economic Update Hawaii is focused on both public health and the economy  Hawaii is categorized as “close to containment” according to Harvard Global Health Institute’s COVID Risk Level map (1) Health Update  Containment was made possible by early action to close non ‐ essential business and government activities as well as a mandatory fourteen (14) day self ‐ quarantine for all persons entering the State or traveling inter ‐ island  To date there have been over 1,700 confirmed cases of COVID ‐ 19 and 26 deaths in Hawaii (2)  Hawaii has the lowest per capita cases in the nation of 89.6/100k and the lowest deaths per capita of 1.7/100k (3)  The State currently has 179 contact tracers (but only uses 9% of this capacity) and is in the process of training hundreds more  The State is currently conducting 1,300 to 1,600 tests per day (33% of 5,000 capacity), but expects total capacity could decline in coming weeks due to supply shortages on the mainland  The State is looking to implement a marketing campaign for personal responsibility to prevent COVID ‐ 19 transmission  The successful containment measures have allowed the State to responsibly re ‐ open its economy without a major outbreak Economic Update  The State is currently in Phase 2, that includes indoor gathering places, exercise facilities, museums, theaters, personal services, and restaurants for dining ‐ in (retail and shopping malls opened in May)  The quarantine for persons traveling inter ‐ island was cancelled effective June 16, 2020 and replaced by requirements for health screenings, temperature scans and reporting requirements – a test case for an expected higher volume of incoming travelers  The Governor is targeting a September 1 st date to lift the quarantine for visitors from the U.S. mainland, subject to a negative COVID ‐ 19 test within three days prior to arrival  The State is considering travel protocols for lifting the quarantine for visitors from Japan, Korea, New Zealand and Australia  It was recently announced that Hawaii has been placed on a list of countries and regions that Japan leaders are considering for the resumption of international travel, although specific details and the start date remain to be determined  The State’s plans for re ‐ opening the 2020 ‐ 21 school year on August 17, 2020 allows for each public school to select from among Education three approved school models for each school level – with a priority for in person learning for the earlier grade levels  The University of Hawaii system will reopen its 10 campuses across the State for the fall 2020 semester, which begins on August 24, 2020, using a hybrid model that provides a combination of online resources and on ‐ campus instruction. ____________________ (1) https://globalepidemics.org/key ‐ metrics ‐ for ‐ covid ‐ suppression/. 3 (2) https://health.hawaii.gov/coronavirusdisease2019/ as of July 27, 2020. (3) https://www.cdc.gov/covid ‐ data ‐ tracker/#cases.

Labor Market The State’s labor market has improved in recent months  The State’s unemployment rate was 13.9% in June Hawaii Employment Base ‐ 1 st Quarter 2020 (1) (seasonally adjusted) Information Agriculture Manufacturing  According to a Hawaii Commercial Rent Survey on July 1% Other Services 1% 2% 8 th , 84% of businesses are now open (2) 4% Trade, Private Transportation Education Financial  Federal (including military), state and local government 2% & Utilities Activities 17% are stable components of the economy 4% Natural Resources,  Private health care as well as professional and business Mining, Construction services have grown in recent years 5% Local Government  The construction industry remains strong with large Leisure & 3% Hospitality public and private sector capital projects ongoing 18% State Government  Supplemental unemployment insurance and other 10% federal dollars from the CARES Act have helped bolster the economy Professional & Health Care & Business Social Services Assistance Federal Federal 10% 10% (Civilian) (Military) 5% 8% ____________________ 4 (1) Source: State of Hawaii, Department of Labor and Industrial Relations, U.S. Bureau of Economic Analysis, U.S. Bureau of Labor Statistics.